Why 12A and 80G matter for NGOs
After an NGO, Trust, Society or Section 8 Company is registered, it may seek tax recognition and stronger donor confidence. In simple terms, 12A or 12AB relates mainly to eligible tax exemption for the organisation, while 80G relates to eligible deductions for donors.
What is 12A registration?
12A registration helps an eligible charitable or religious organisation claim income-tax exemption on qualifying income applied toward charitable purposes, subject to records, fund usage and ongoing compliance.
What is 80G registration?
80G registration allows eligible donors to claim a deduction for qualifying donations, subject to the Income Tax Act. Donors often ask for valid 80G approval, proper receipts and transparent records before contributing.
Documents generally required
Common documents include the registration certificate, charter documents, PAN, address proof, office-bearer details, activity reports, financial statements, bank statements, donation records and evidence of charitable work.
Common mistakes NGOs make
Organisations sometimes delay maintaining accounts and activity evidence or mix personal and NGO funds. Clear records, donation receipts, minutes and statutory documents should be maintained from the beginning.
12A/80G vs CSR-1
12A and 80G relate to income-tax and donor-deduction matters. CSR-1 is separate and relevant to entities seeking to receive eligible CSR funds from companies.
Conclusion
12A and 80G can strengthen donor trust and tax efficiency, but approval and continued benefit depend on clear objects, proper records and timely compliance.